I definitely agree with your theory regards TFC capturing a large value added component; I believe the FDA has told Viroxis that it can only use oil from TFC, as TFC is the only source with an identifiable and sustainable supply chain? I would also expect the company's ability to offer an ongoing supply (that can be readily verified by customers by a plantation visit, as opposed to 'wild' harvested) supports a price premium for non-pharmaceutical customers.
At present I also agree with your perception of the 2015 not being an efficient market price, due the very small size of the harvest. Perhaps this will change as harvest volumes increase? Nonetheless given the benefits held by TFC vs international customers that need to travel to Kununurra the company will always have an advantage
I guess being both a MIS investor and TFC share holder you will capture maximum benefits: upfront tax deduction and capture of the entire wood/oil value chain.
TFC Price at posting:
$1.54 Sentiment: Hold Disclosure: Held
